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European Union

POTUS SOTU

In his State of the Union address on February 12, 2013, President Obama announced that the Administration plans to notify Congress of its intent to launch negotiations on a Transatlantic Trade and Investment Partnership with the European Union (EU). The President’s decision recognizes that the U.S.-EU economic relationship is already the world’s largest, accounting for one third of total goods and services trade and nearly half of global economic output.  The Transatlantic Trade and Investment Partnership is envisioned as an ambitious, high-standard trade and investment agreement that would provide significant benefit in terms of promoting U.S. international competitiveness, jobs, and growth.

The U.S. economic relationship with the EU is the largest and most complex in the world, generating goods and services trade flows of about $2.7 billion a day [2012 estimate] and transatlantic investment is directly responsible for roughly 6.8 million jobs [2010 estimate].  This enormous volume of transatlantic trade and investment promotes economic prosperity on both sides of the Atlantic and in the dozens of other countries that trade with the transatlantic partners.  The United States and the EU continue to pursue initiatives to create new opportunities for transatlantic commerce.

Key Trade and Investment Data and Trends

U.S. exports to the EU accounted for 21 percent of overall U.S. goods and services exports.  U.S. imports from the EU accounted for 19 percent of overall U.S. goods and services imports.  The U.S. purchased 17 percent of all EU goods exports and 25% of all EU services exports, and supplied 11 percent of all EU goods imports, and 31% of all EU private services imports.

Trade in goods.  The U.S. goods trade deficit with the EU was $115.7 billion in 2012, a 15.9% increase over 2011.  U.S. goods exports in 2012 were $265.1 billion, down 1.2% from 2011, but up 57% from 2000.  Corresponding U.S. imports from the EU were $380.8 billion, up 3.4 percent from 2011, and up 67% from 2000.

Trade in services.  The United States had a private services trade surplus of an estimated $55.4 billion with the EU in 2012, up 6.5% from 2011.

U.S. exports of private commercial services (i.e., excluding military and government) to the EU were an estimated $194 billion in 2012, up 2.8 percent from 2011, and up 108 percent since 2000.  Other private services (business, professional, technical, and financial), royalties and license fees, and travel categories accounted for most U.S. services exports to the EU.

Sales of services in the EU by majority U.S-owned affiliates were $499 billion in 2010 (latest data available), while sales of services in the United States by majority EU-owned firms were $382 billion. Intrafirm trading - trade that takes place within the same company - accounts for more than half of total U.S. trade with the EU.

Agricultural trade.  U.S. exports of agricultural products to EU countries totaled $9.9 billion in 2012.  The EU countries together rank 5th as an agricultural export market for the United States.  Leading categories include: tree nuts ($1.7 billion), soybeans ($1.5 billion), processed fruit and vegetables ($514.9 million), wine and beer ($492.4 million), and feeds and fodders ($405.5 million).

U.S. imports of agricultural products from EU countries totaled $16.6 billion in 2012.  The EU countries together rank 2nd (after Canada) as a supplier of agricultural imports to the United States.  Leading categories include: wine and beer ($5.0 billion), essential oils ($1.9 billion), snack foods ($1.1 billion), processed fruit and vegetables ($934 million), and feeds and fodders ($832 million).

Investment.  U.S. and EU investors together owned roughly $3.7 trillion in direct investment in each other's economy in 2011.  The stock of U.S. foreign direct investment (FDI) in the EU totaled $2.1 trillion in 2011 (latest data available), and the stock of EU FDI in the United States was worth $1.6 trillion that year.  U.S. FDI in EU countries is primarily concentrated in nonbank holding companies, finance/insurance, and manufacturing sectors.  EU countries' FDI in the United States is mostly in the manufacturing, finance/insurance, wholesale trade, and information sectors.

The EU countries with the largest FDI in the United States are the United Kingdom, the Netherlands, Germany, and France.

The Transatlantic Trade and Investment Partnership

TTIP Info

List of Lead Negotiators

Readouts from TTIP Negotiating Rounds

Blogs

Stakeholder Consultations, Investment and the T-TIP

Cross Post: T-TIP On Our Tongues

Joint US-EU Document Highlights Benefits of the Transatlantic Trade and Investment Partnership (T-TIP) for Small and Medium-Sized Enterprises

In Case You Missed It: Opportunities for Small and Medium Sized Enterprises in the T-TIP

T-TIP: A Detailed View of Negotiating Objectives and Benefits and a New Opportunity to Provide USTR with Feedback

Cross Post: SBA, USTR Helping U.S. Small Business Exporters Expand Trade with European Union

USTR Hosts Stakeholder Engagement Events for the Third Round of the Transatlantic Trade and Investment Partnership (T-TIP) Negotiations

Ambassador Froman discusses the Transatlantic Trade and Investment Partnership at the Munich Security Conference

Five Things You Should Know About The Transatlantic Trade and Investment Partnership (T-TIP)

USTR Holds Series of Stakeholder Engagement Events at First Round of Transatlantic Trade and Investment Partnership Negotiations

Negotiations for the Transatlantic Trade and Investment Partnership Have Begun

What They're Saying: The Transatlantic Trade and Investment Partnership (Part 1)

What They're Saying: The Transatlantic Trade and Investment Partnership (Part 2)

Federal Register Notices

Request for Comments Concerning Proposed Transatlantic Trade and Investment Agreement

Schedule of TTIP Hearing on May 29 and May 30, 2013

Other Bilateral Engagement

U.S.-EU Shared Principles for International Investment

The United States and the European Union (EU) together, under the auspices of the Transatlantic Economic Council, developed Shared Principles for International Investment. These principles reaffirms our joint commitment to open, transparent, and non-discriminatory international investment policies. International investment, both by American companies abroad and by foreign companies in the United States, benefits U.S. companies and American workers by creating high-paying jobs, boosting exports, and spurring innovation in the United States.

U.S.-EU Trade Principles For Information and Communication Technology Services 

A U.S. government negotiating team led by the Office of the United States Trade Representative reached agreement with the European Commission on April 4, 2011 on a set of non-binding trade-related principles for information and communication technology (ICT) services. The United States and the European Union (EU) will jointly promote the adoption of these principles by other countries.

The principles agreed to will, if widely adopted, support the global development of ICT services, including Internet and other network-based applications that are critical to innovative e-commerce, Internet search and advertising, data storage, and other services. The principles address transparency in legislation and regulation; open access to networks and applications; the free flow of information across borders; foreign investment in ICT sectors; facilitating the cross-border supply of services; the efficiency of spectrum allocation; the independence of regulatory authorities; the granting of operating licenses; interconnection between suppliers of basic public telecommunication services; and international cooperation. Each of the principles expresses an approach to policy and regulation in the ICT sector that is broadly shared by the United States and the EU.